DoD's $14.4M paper products contract awarded to Fort James Operating Company shows questionable value and limited competition

Contract Overview

Contract Amount: $14,429,964 ($14.4M)

Contractor: Fort James Operating Company

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2008-12-31

Contract Duration: 91 days

Daily Burn Rate: $158.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - PAPER PRODUCTS

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to FORT JAMES OPERATING COMPANY for work described as: RESALE - PAPER PRODUCTS Key points: 1. The contract's value proposition is unclear given the lack of detailed performance metrics and benchmarking. 2. Limited competition raises concerns about potential overpayment and reduced price discovery. 3. The short duration and fixed-price nature suggest a need for immediate supply rather than long-term strategic sourcing. 4. The contract falls within the 'Paper (except Newsprint) Mills' sector, indicating a focus on basic manufacturing inputs. 5. Oversight mechanisms are not detailed, making it difficult to assess accountability for this procurement. 6. The absence of small business set-asides or subcontracting plans warrants further investigation into broader economic impact.

Value Assessment

Rating: questionable

Benchmarking this $14.4 million contract for paper products against similar procurements is challenging due to the limited information available on specific product types and quality standards. The fixed-price contract type suggests a defined scope, but without clear performance metrics or comparisons to market rates for equivalent goods, assessing value for money is difficult. The per-unit cost is not provided, further obscuring a direct comparison to industry benchmarks or other government contracts for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means that only one vendor, Fort James Operating Company, was considered for this award. The lack of competition limits the government's ability to explore alternative suppliers, potentially negotiate better pricing, or ensure the most innovative solutions are considered. It suggests circumstances where competition was deemed impractical or impossible.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from competitive bidding. This limits the potential for cost savings and may indicate a missed opportunity to secure better value.

Public Impact

Military personnel and their families stationed in Georgia will benefit from the supply of essential paper products. The contract ensures the availability of paper products for the Defense Commissary Agency, supporting daily operations. The geographic impact is localized to Georgia, where the delivery orders are likely fulfilled. Workforce implications are minimal, as this contract focuses on the supply of goods rather than services requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated prices for taxpayers.
Limited transparency regarding the justification for sole-source award.
Absence of performance metrics makes it difficult to assess the quality and timeliness of delivery.
No indication of small business participation or subcontracting opportunities.
Short contract duration (91 days) suggests a reactive procurement rather than strategic planning.

Positive Signals

Ensures a supply of essential paper products for military commissaries.
Fixed-price contract provides cost certainty for the awarded amount.
Awarded to a specific company, potentially indicating a pre-existing relationship or specialized capability.

Sector Analysis

The paper products industry is a mature sector focused on the manufacturing and distribution of various paper goods. This contract falls under the 'Paper (except Newsprint) Mills' (NAICS 322121) category. Spending in this sector by the federal government typically involves office supplies, packaging materials, and specialized paper products for various agencies. While not a high-tech sector, consistent demand exists for these essential goods across government operations. Benchmarking this specific contract is difficult without more granular data on the types of paper products procured.

Small Business Impact

This contract does not appear to include any specific provisions for small business set-asides or subcontracting. The sole-source nature of the award further limits opportunities for small businesses to participate in this procurement. This suggests that the primary contractor, Fort James Operating Company, is expected to fulfill the entire requirement. Further analysis would be needed to determine if any subcontracting occurred, and if so, whether small businesses were involved.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Commissary Agency (DeCA) and potentially the Department of Defense's Inspector General. However, the provided data does not detail specific oversight mechanisms, performance monitoring protocols, or accountability measures implemented for this particular award. The transparency of the sole-source justification and the subsequent contract performance is not readily apparent from the available information.

Related Government Programs

Defense Commissary Agency Operations
Department of Defense Supply Chain Management
Federal Procurement of Office Supplies
Paper Product Manufacturing Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Absence of performance metrics hinders value assessment.
Limited transparency on contract oversight and accountability.
No clear small business participation outlined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to FORT JAMES OPERATING COMPANY. RESALE - PAPER PRODUCTS

Who is the contractor on this award?

The obligated recipient is FORT JAMES OPERATING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2008-10-01. End: 2008-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. The specific justification for why competition was not available is not detailed in the data. Typically, such justifications include reasons like the existence of only one responsible source, urgent and compelling needs, or specific national security requirements. Without further documentation from the awarding agency (Defense Commissary Agency), the precise rationale remains unknown. This lack of transparency is a concern for ensuring fair and efficient use of taxpayer funds.

How does the pricing of this contract compare to market rates for similar paper products?

Direct comparison of pricing is difficult without specific details on the types, quantities, and quality standards of the paper products procured under this $14.4 million contract. The data does not provide per-unit costs or detailed product specifications. Given the sole-source nature of the award, there is a heightened risk that the pricing may not be as competitive as it would be in a fully competed environment. Benchmarking against other federal contracts or commercial price lists for similar items would require more granular product information and potentially access to proprietary pricing data.

What are the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not include any information regarding Key Performance Indicators (KPIs) or specific metrics used to measure the performance of Fort James Operating Company under this contract. The contract type is 'FIXED PRICE,' and the award is for 'RESALE - PAPER PRODUCTS.' While this suggests a focus on delivery of goods, the absence of defined performance standards makes it challenging to assess the contractor's adherence to quality, timeliness, or other critical aspects of service delivery. Effective oversight typically relies on such KPIs to ensure value and accountability.

What is the historical spending pattern for paper products by the Defense Commissary Agency?

The provided data focuses on a single contract award from 2008. To understand historical spending patterns for paper products by the Defense Commissary Agency (DeCA), a broader analysis of past contracts would be necessary. This would involve examining contract databases for previous awards related to paper products, noting the total amounts spent, the types of products procured, the contractors involved, and the competition levels. Such an analysis could reveal trends in spending, identify key suppliers, and highlight any shifts in procurement strategies or pricing over time.

What is the track record of Fort James Operating Company in fulfilling federal contracts, particularly for paper products?

The provided data identifies Fort James Operating Company as the contractor for this $14.4 million paper products contract. However, it does not offer insights into the company's broader track record with federal contracts. To assess their performance history, one would need to examine past contract awards to Fort James Operating Company across various agencies, looking at factors such as contract values, performance reviews, any disputes or terminations, and their history with similar product procurements. Without this broader context, it's difficult to gauge their reliability and past success in fulfilling government requirements.

Industry Classification

NAICS: Manufacturing › Pulp, Paper, and Paperboard Mills › Paper (except Newsprint) Mills

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 133 PEACHTREE STREET NE, ATLANTA, GA, 30303

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,429,964

Exercised Options: $14,429,964

Current Obligation: $14,429,964

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0106G3497

IDV Type: IDC

Timeline